Montenegro: Inflation this year could be the highest since the restoration of independence, News
Inflation in Montenegro could reach 20% this year, according to the Report on Price Movements for the third quarter of this year. In the report that was adopted at today’s session of the Council of the Central Bank (CBCG), it is stated that current trends indicate that inflation this year will be the highest since the restoration of independence.
– It was pointed out that inflation is mostly imported, i.e. caused by factors from the international market, while the smaller part is the result of domestic imbalances. The model forecast for the end of 2022 projects that inflation will range from 16.2% to 18.9%, with a central projection of 17.8%. The CBCG expert assessment projects an inflation rate in the range of 16% to 20% – they say.
As announced by the CBCG, the Council also determined the Draft Law on Amendments to the Law on the Rehabilitation of Credit Institutions in order to harmonize it with the relevant directives of the European Union, among others with the BRRD II directive.
– These changes and additions will create prerequisites for additional strengthening of the capacity to cover losses and recapitalization of credit institutions, so that the negative impact of possible rehabilitation on the stability of the financial system and public finances is minimized. With the entry into force of this law, the domestic legislative framework is fully harmonized with EU regulations in the field of rehabilitation of credit institutions – they state.
The Council considered and adopted the Macroeconomic Report of the Central Bank of Montenegro for the third quarter of 2022. The Report states that real GDP growth in Montenegro during the first nine months of the current year, according to Monstat’s preliminary data, amounted to 7.1% compared to the same period of the previous year. The achieved growth is the result of increased activities in tourism, trade and most types of traffic.
In order to fulfill the obligation of the CBCG to determine the countercyclical buffer rate on a quarterly basis, the Council adopted the Decision on the countercyclical capital buffer rate for the first quarter of 2023.
– Based on the results of the previously conducted analysis of relevant trends in the banking sector and the overall economy, the Decision determined that the rate of the countercyclical capital buffer for the first quarter of 2023 will be 0%, as it has been until now – it was announced.
The Council also adopted the Decision on amending the Decision on capital adequacy of credit institutions, as well as the Decision on amending the Decision on macroprudential measures relating to loans granted by credit institutions to natural persons, which extends the application of measures aimed at limiting the growth of unsecured cash loans natural persons during the next year as well.
At the session, the Report on the operations and policy implementation of the Central Bank of Montenegro for October 2022 and the Quarterly Report on the operations of banks (for the third quarter of 2022) were adopted, and other current issues within the jurisdiction of the CBCG Council were discussed, local media reports.
- February 16, 2023 Serbian Belkalhan calcite & graphite mining developer invites JV partners for joint critical raw materials exploitation
- March 24, 2023 Montenegro, Brajići wind power plant can supply over 50,000 households
- March 24, 2023 Crnogorski Telekom is dominating when it comes to telecommunications
- March 24, 2023 Montenegro, What are the new goals and projects?